QUESTION 4 Garfield Electronics Sdn Bhd manufacturers a product called LED casing. In year 2017, 80,000 units of LED casing had been sold with RM 50.00 per casing. Additional information as per below : Cost RM Direct Material 8 Direct Labour 12 Variable Overhead 4 Fixed Factory Overhead 3 Administrative and Selling Expenses : Variable Fixed You are required to : Prepare an income statement for Garfield Electronics Sdn Bhd by using Absorption Costing Approach and Marginal Cost Approach. 22

QUESTION 4 Garfield Electronics Sdn Bhd manufacturers a product called LED casing. In year 2017, 80,000 units of LED casing had been sold with RM 50.00 per casing. Additional information as per below : Cost RM Direct Material 8 Direct Labour 12 Variable Overhead 4 Fixed Factory Overhead 3 Administrative and Selling Expenses : Variable Fixed You are required to : Prepare an income statement for Garfield Electronics Sdn Bhd by using Absorption Costing Approach and Marginal Cost Approach. 22

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 4 Achimota Ltd produces a single product and has the following financial information: Selling Price Cost per unit: Direct Materials Direct Labour Variable Overheads GH¢ 50 15 14 4 Fixed manufacturing overheads are GH¢40,000 per month, production volume is 10,000 units per month and sales is 9,200 units. You are required to: a) Calculate the cost per unit under: i. Absorption costing ii. Marginal costing b) Prepare the income statement of ABC Ltd under: i. Absorption costing technique ii. Marginal costing technique c) Reconcile the profits obtained under (bi) and (bii) d) Explain the reasons for the difference in profits in (c) above.
Question Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost:Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit:Direct Materials Rs 30Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
Question 4 The following data is available for the products that a company manufactures: Sales price Costs: Direct material Direct labour Variable manufacturing overhead Fixed manufacturing overhead Paragraph BI UA/ 叩く Product A $120 IIII 50 27 Material required 2.3 meters 3.0 meters 1.5 hours 1.0 hours Direct labour hours required Machine hours required 0.8 hours 0.5 hours The demand for each product exceeds the capacity of labour hours available to produce them. Required: 1. Compute the amount of contribution margin (profitability index) for Product B given the indicated constraint. 2. If the company has the indicated constraint, what are two ways they can increase capacity at the bottleneck? 16 8 Product B $140 +v 40 18 10 5
Case: 1 The following particulars are extracted from the records of a company. Particulars Product A Product B OMR 120 3 kg OMR 15 Sale price per unit Consumption of material Material cost Direct labour cost Direct expenses Machine hours used Fixed overheads per unit Variable overheads per unit OMR 100 2 kg OMR10 15 10 3 OMR 5 OMR 10 15 20 Direct labour per hour is OMR 5. Comment on the profitability of each product [both use same raw material] when, I] total sales potential in units is limited II] total sales potential in value is limited I) raw material is in short supply IV) production capacity [in terms of machine hours] is limited. Assuming raw material as the key factor, availability of which is 10,000 kg and maximum sales potential of each product being 3500 units, find out the product mix which will yield maximum profits.
QUESTION 2 ABC Sdn Bhd is producing a product called BB. Below are the cost information provided by Manager of BB production. Selling price RM 30.00 Direct material RM 2.80 Direct labour RM 8.00 Variable manufacturing overhead RM 1.20 Variable non-manufacturing overhead RM 0.80 Fixed production overhead (per production unit) RM 3.50 Fixed administration and general overhead RM 12,200 Fixed selling and distribution overhead RM 4,100 Production 5,000 units Sales 5,200 units Closing stock 500 units Opening stock 700 units Required: A) Prepare the Income Statement of ABC Enterprise for the second half year 2020 using Marginal Costing. B) Prepare the Income Statement of ABC Enterprise for the second half year 2020 using Absorption Costing. C) Prepare the reconciliation for the difference in the profits under the two costing approaches.
QUESTION 1 Nice2022 Limited is a company producing and selling plastic products. Sales price per unit is RM20.00. Below is the information on the production and sales of the product for 2021: Cost per unit: RM Direct material 0.90 Direct labour 2.50 Variable overhead 0.50 Fixed overhead 0.50 Other costs: RM Variable selling expenses 5% from total sales Fixed selling expenses 25,000 Fixed administration expenses 15,000 Unit Unit produced, sold and stock: Sales 130,000 Opening stock Production 10,000 150,000 Additional information: ● Budgeted fixed overhead amounted to RM105,000 . Budgeted production are 175,000 units You are required to: a) Calculate the over/under absorbed of overhead. b) Prepare the statement of profit and loss using the absorption costing format. c) Show the marginal profit/loss by preparing the profit reconciliation statement
ext/map/index.htm?_con=con&external_browser%=0&launchUrl=https%253A%252F%252 Fnewconnect.mheducation.com%252F#/activity/q er 6 Saved Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 2$ 24 16 24 %24 $ 220, 000 $ 140, 000 During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year of operations, it produced 55,000 units and sold 30,000 units, In its third year, Haas produced 20,000 units and sold 45,000 units. The selling price of the company's product is $54 per unit. Required: 1. Compute the company's break-even point in unit sales. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year…
Check my work 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 81,000 units during the year at a selling price of $8.23 per unit. Prepare a contribution format income statement for the year. 15 Complete this question by entering your answers in the tabs below. polnts Skipped Required 1 Required 2 eBook Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Hint Print Units Produced and Sold References 51,000 71,000 91,000 Total costs: Variable costs $ 117,300 Fixed costs 350,000 Total costs $ 467,300 $ $ Cost per unit: Variable cost Fixed cost Total cost per unit $ 0.00 $ 0.00 $ 0.00
G 1. Compute the companys deg X Connect tent A https://ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external_browser=0&l Saved napter 05 Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs $2,160,000 1,728,000 $432,000 324,000 Pretax income $ 108,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 5% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the company's degree of operating leverage for 2019. Degree of operating leverage 3.0 ост 20 W
A E:09 docs.google.com/forms/d/e /Q 2 Basra Company sells a product for $24. Units costs are as follows: Direct materials Direct labor $7.70 4.60 Variable overhead 3.10 Variable selling expenses fixed selling and administrative expenses are $36,600 2.60 per unit sold * :Variable cost per unit is.1 $18 $15.4 $24 * :Contribution margin per unit is .2 $2.6 $6 $8.6 II
Prime cost and conversion cost share what common element of total cost? Select one: a. Direct labor. b. Fixed overhead. c. Variable overhead. d. Direct materials. Zapora Bhd manufactured smart watches. In November 2021, Zapora produced 2,200 watches with the following costs: Direct Materials RM32,000 Direct Labour RM13,000 Manufacturing Overheads RM27,000 Additional information: There is no opening or closing stock of work-in-progress (WIP) during the month of November. Calculate Cost per Unit for the watches produced in November 2021. Select one: a. RM32.73 b. RM18.18 c. RM14.55 d. RM20.45 Question 23 Question text Joba Company uses differential piece rate to motivate its employees. 75% of piece rate below standard and 110% of piece rate at above standard. Worker A produces 150 units per day and worker B produces 180 units per day. Normal rate per hour is $2.20 and standard time per unit is 3 minutes. Assuming standard working hour is 8…
Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? Total labor cost Manufacturing Overhead ? 400000 100000 90000 30000 ? Calculate: A. B. Calculate cost per unit B. Describe the production costs in the equation form Y = f+ vX. C. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month